Transactions 1-11: Prepare journal entries to record transactions for the first month in business.Transactions 12-15:Prepare the required adjusting entries(use information from the unadjusted trial balance to calculate the required adjustments).Transactions 16-19:Prepare the necessary closing entries.

1

On December 1, Blue and White Photgraphy issued 10,000 shares of common stock to Michael Blue in exchange for $37,000 cash.

2

On December 1, Blue and White Photgraphy purchased photography equipment for $15,120 cash.

3

On December 1, Blue and White Photgraphy prepaid $2,400 for the first 2 month's rent for their photography studio. The company's policy is to initially record prepaid expenses and unearned revenues in balance sheet accounts.

4

On December 4, Blue and White Photgraphy received a $4,000 deposit (partial payment) from Kim Jong and Vince Molinari for their June wedding. The company's policy is to initially record prepaid expenses and unearned revenues in balance sheet accounts.

5

On December 9, Blue and White Photgraphy received $3,240 cash for full payment in advance from Edward Taylor for a late December photo shoot.

6

On December 12, Blue and White Photgraphy purchased $2,100 of photography supplies on account.

7

On December 15, Blue and White Photgraphy performed photography services for a local church and billed the client $10,800.

8

On December 18, Blue and White Photgraphy received its electric bill (utilities) in the amount of $2,100. Payment is due on January 18.

9

On December 28, Blue and White Photgraphy paid $800 on account.

10

On December 30, Blue and White Photgraphy paid $1,400 in staff assistant's salary for December.

11

On December 30, Blue and White Photgraphy paid a $1,600 cash dividend.

12

Information for adjusting entries: The photography equipment purchased on December 1 has an estimated useful of of 3 years and no residual value. Prepare the adjusting entry to record depreciation for the month of December.

13

Prepare the adjusting entry required for rent expired during December.

14

Prepare the adjusting entry to record revenue earned from the photo shoot for Edward Taylor. Taylor paid $3,240 in advance on December 9, and the service was completed late in December.

15

A physical count of photography supplies indicate that $420 of supplies are on hand as of December 31. Prepare the required adjusting entry, if any.

16

Prepare the entry to close the revenue account(s) to Income summary.

17

Prepare the entry to close the expense account(s) to Income summary.

18

Prepare the entry to close income summary.

19

Prepare the entry to close the dividends account.